From the Sector

The sustainable collaboration and innovation between Indorama Ventures (IVL), Auping and TWE Group presented a certified cradle to cradle process for mattress components across nonwoven applications, at Techtextil, Frankfurt, 21st to 24th June 2022.

Using circular research and design, the industry partnership between IVL Mullagh (Ireland), Auping and TWE Group has resulted in a perpetual, sustainable economic business model, for manufacturers globally. The inclusion of safe raw materials within mattress manufacturing allows the materials to be easily disassembled at the product’s end of use in order to be further reused as same components or recycled into new raw material at the same quality level, to enable versatile textile applications.

Designed for disassembly to optimize the use of existing resources, reduce carbon footprint and support customer objectives all along their customers’ supply chain. This circular industry collaboration begins with design, where the mattress is constructed using only two different base materials, 100% PET polyester textiles and steel wire pocket springs connected with Niaga®️, a non toxic reversible adhesive, making the mattress easy to disassemble and recover.

IVL, Auping and TWE’s shared vision for a better world is demonstrated through their connected and innovative circularity that helps to close the loop. Auping collects, sorts and separates the collected fabrics, which then go to IVL Mullagh for processing, melting and extrusion to form polyester staple fiber. These staple fibers are then converted by TWE Group into nonwovens for use in Auping’s Evolve mattress, a fully circular mattress. Following the end of mattress use, the material recovery process simply starts again.

Auping estimates that annually more than 40 million mattresses are disposed of in Europe alone, the majority of which are incinerated. Their take back system in the Netherlands ensures that when their new mattress is delivered, the old mattress is retrieved and recycled, irrespective of the brand, ensuring existing materials are continually optimized, diverted from landfill and kept in use to achieve a circular economy.

• Bio circular Fibre - Shaping Sustainable Living

The European staple fibre producer Beaulieu Fibres International turns the spotlight on future-focused solutions for nonwovens & engineered fabrics at Techtextil 22. A key priority is innovation in polyolefin fibres and bicomponent polyester/polyolefin fibres, to advance sustainable design, end-of-life recyclability, and resource and carbon footprint reduction for industrial and hygiene applications.

The new sustainability roadmap - Route 2030 outlines how the company is targeting the reduction of our environmental footprint to zero, taking care of people and doing business in a transparent, ethical way. Sustainability is key to Beaulieu Fibre International’s long-term strategy, and the company is heavily focused on defining its green portfolio to support evolution in diverse market applications and to work towards a circular economy with the whole supply chain.

Beaulieu Fibres International will offer ISCC Plus (International Sustainability and Carbon Certification Plus) certified bio circular MONO-PP and BICO PP/PE fibres in 1,3-8,9 dtex, available with all the main available finish classes. These drop-in solutions, with no loss in quality, will support customers reduce reliance on virgin fossil carbon in their nonwoven and engineered fibre applications, contributing to the transition towards a circular economy.

At Heimtextil Frankfurt 2022, Devan, will launch novel technologies to the Home Textiles market. The first innovation is a range of bio-based and biodegradable microcapsules. With increased sustainability and circularity requirements in Europe and beyond, Devan is pushing the limits further of its encapsulation methods, also in terms of wash durability. The capsules are biodegradable and hence no harm for risk of microplastics. The new R-Vital NTL range includes evergreen Aloe Vera, waste-material based avocado seed oil with very high hydration abilities! and Vitamine E.

Devan, as part of the Pulcra Chemicals Group, co-launches the new Pulcra TEC-SU, a new biobased C0 DWR. This hydrophobic agent has a bio-content above 60% and contains no APEO or formaldehyde. It keeps performing very good after multiple washings.

The Devan bio-based thermoregulation range, like Tones of Cool Bio which is already several years on the market, is having a positive effect on carbon footprint. Devan is now expanding its cooling range with a specific foam-solution. In the Home Textile industry new (bio)foam types are introduced the last 1,5 years to comply with the EU GreenDeal and circularity / recycling requirements. A good enough reason for Devan to develop a foam-specific cooling system. After all, research shows that our bedroom interiors get warmer every year, partly due to better insulation but also due to global warming. On top of that Devan thermoregulation solutions can save Energy and Water during application: low curing solutions are available next to cooling products to that can be applied, using less water.

Setting concrete environmental sustainability objectives for abating direct greenhouse gas emissions and leveraging investments and state-of-the-art technology. This is the approach that has always guided RadiciGroup in operating its businesses with a wide range of products: chemical intermediates, polyamide polymers, high performance engineering polymers and advanced textile solutions.

Between 2011 and 2020, overall Group greenhouse gas emissions were cut by 70%, falling from about 700,000 metric tons per year of CO₂ equivalent to 200,000 metric tons.  

These results were largely achieved through the action implemented by the Group’s Specialty Chemicals Business Area at its plants in Novara, Italy, and in Germany, which are the heart of RadiciGroup’s chemicals business. Here the Group produces an essential intermediate for synthesizing polyamide 66, adipic acid, whose production process releases nitrous oxide as a by-product. Nitrous oxide in itself is not particularly problematic (in fact, it is used in the medical sector as an anaesthetic and in the food industry as a spray propellant, in cans of whipped cream, for instance), but, if it is released into the atmosphere, it has a much higher greenhouse gas effect than carbon dioxide.

At the Radici Chimica site in Novara, a multiyear investment budget of over EUR 10 million was dedicated to lowering these emissions through three important undertakings: in 2004, putting into operation a three catalyst bed reactor, designed and patented by the company, to decompose nitrous oxide into nitrogen and oxygen, the two elements it is composed of, thus making it innocuous for the atmosphere; in 2013, installing an EnviNOx plant to decrease the release of nitrous oxide formed in the production of nitric acid, and, in 2021, a further improvement in the emissions abatement system associated with nitric acid production.

Since activating the last plant just 9 months ago, more than 35,000 metric tons of CO₂ equivalent have been cut. All the above-mentioned actions have enabled Radici Chimica Novara to record a nitrous oxide emissions level less than 10 ppm, a value close to zero.

With an annual report entitled 'Here.We.Go' and a sustainability report 'Shaping sustainable living, together', B.I.G. is also publishing a strong ambition for a sustainable future.

Offering sustainable flooring and material solutions will be the number one priority for the coming years.

The Group's first sustainability report is built around a self-designed sustainability model - "Route 2030" - which is based on achievable commitments, covers the main priorities and reflects B.I.G.'s vision in a sincere way.

Their vision for the B.I.G. change is to actively build a better future by their our carbon footprint to zero and doing business in a transparent, integer way. In this sense, it is the translation of the Group's purpose defined in 2021: shaping sustainable living, together.

Pol Deturck adds “By 2030, together with a broad group of suppliers, stakeholders and partners, we want to be the leader in sustainable flooring and material solutions. Specifically, our future value proposition is based on products and services that are environmentally & climate friendly, circular and offered by talented, innovative people with an emphasis on integrity and respect for values. This results more in a recurring value proposition for the future.”

Clear growth ambitions
As a 100% family-owned international Group with a clear long-term vision, B.I.G. stayed true to their plans and kept on investing in all areas of their business.
“The ambition for 2021 was to invest over 100 mio euro. But we were held back by external, unforeseen factors: from delays on quotes and execution to the lack of availability and resources due to the pandemic. If all goes as planned, we’ll make up for it in 2022 with an investment budget well over 100 million euro. The main areas of interest will be sustainability, innovation and Industry 4.0.” says Pieter-Jan Sonck, CFO of B.I.G.

Adding to the gradual top-line growth of recent years, the Group can look back on an unprecedented financial boom. The driving forces: favorable market conditions, a revitalized growth strategy and a team of nearly 5.000 first-class employees.

B.I.G. reported a turnover of EUR 2,5 billion, an increase of 45 % compared to 2020. The Group ebitda amounted to EUR 451 million, an increase of 120 % compared to 2020 and a net result of EUR 274 million, a growth of 215% compared to 2020.

Fruitful year for all Business Units
It was a fruitful year for all 3 business units, but the Group's business unit Polymers stood out. Exceptionally strong demand in Europe and North America, combined with raw material shortages and unplanned shutdowns of competitors, pushed prices and margins up to highs. The Polymers facilities ran at full capacity to meet the customers’ needs and hit all-time profit records during several months.

The Group's business unit Flooring Solutions also fared well. Most divisions and regions outperformed amid surging energy prices, disrupted supply chains, cost volatility in transport and raw materials, and other challenges. Their sustained focus on innovation, design and product differentiation led to an improved operating result at the end of 2021.

The achievements by Engineered Solutions echo those of the other two business units, from volume increases to budget increases. B.I.G. took big leaps forward in all its key markets, including the automotive sector, geotextiles and filtration.

A boundary-pushing approach to hacking carbon reduction challenges has been established by AkzoNobel and partners from across the extended value chain following the company’s first ever global Collaborative Sustainability Challenge.

During 24 hours of intense discussion at the pioneering event a series of high impact exploration teams was set up. Those involved will now continue to work together in a determined effort to collectively accelerate the reduction of carbon emissions in the paints and coatings industry.

The participants – represented by senior and next generation leaders – hacked four key areas: energy transition, process efficiency, solvent emissions and circular solutions. It resulted in 27 partners signing up, including suppliers, customers and end-users, as well as representatives from finance, government, service providers and consultancies.

AkzoNobel has set science-based sustainability targets to halve its carbon emissions across the full value chain by 2030. Achieving that ambition will rely heavily on collaborating with partners and challenging each other to find innovative ways to overcome the unprecedented challenges everyone faces.

• Hexcel Composite Innovations for Aerospace Applications on Display at JEC World 2022: Hall 5, Stand J41

In late 2021, Hexcel announced an agreement with Fairmat, a deep technology startup, to build the capability to recycle carbon fiber prepreg from Hexcel European operations for reuse in composite panels sold into commercial markets, giving a second life to recovered carbon fiber. To do so, Fairmat has developed a virtuous recycling process, and a sample of its newly recycled material will be available to view at JEC World 2022. Hexcel will present an array of product innovations for aerospace and urban air mobility customer applications during JEC World 2022 in Paris on May3-5. These latest innovations demonstrate the company’s leadership in developing advanced composites technology for the aerospace market.

• Sustainability Focus on Recycling and Reuse
• HiTape® and HiMax® Reinforcements for OoA Processing
• Innovative HiFlow™ Resins for Continuous and Shorter Cycle Injection Processes
• HexPly® Prepregs for Primary Structure and Engine Applications
• HexTow® High Modulus Fibers HM63 and HM54
• Thermoplastics and Processing Innovations for Primary and Secondary Structures
• Lightweight PrimeTex® Reinforcements Solutions for Urban Air Mobility (UAM)

At Techtextil from 21-24 June in Frankfurt, Mahlo will be demonstrating how manufacturers of technical textiles can optimise their production even further using measuring and control technology.

Special straightening technology for technical textiles
Mahlo's range also includes solutions for straightening distorted goods. Best suited for technical textiles are, for example, the symbol of the straightening machine, the Orthopac RVMC-15 and the reinforced version Orthopac GRVMC-15. Frame, bearings, and rollers are designed for high loads and allow large working widths of up to 5,400 mm. As the latest development from Mahlo, the experts present the Orthopac CRVMC-15 automatic straightener, which is particularly interesting for the glass & carbon fabric industry and some special applications.

The Mahlo team will present the wide portfolio of intelligent scanners and sensors that record product and process parameters, such as distortion, fabric temperature, dwell time, basis weight, coating weight, thickness, moisture content, residual moisture, exhaust moisture, air permeability, etc. online. Among other things, visitors can expect to see the Famacont PMC-15 weft density measurement system in live operation. The system measures the weft or course density on the running web and compares it with the target value stored in the recipe data management system. The detected deviation from the target value is used to fully automatically control the overfeed during the needling process at the stenter frame and to ensure a constant weft/course density over the full width of the product.

• Natural fibers combined with bio-derived epoxy resins provide sustainable options for Industrial markets

Hexcel has developed a new product range that combines Hexcel resin systems made with bio-derived resin content with natural fiber reinforcements to create material solutions for Automotive, Winter Sports, Marine and Wind Energy applications.

HexPly Nature Range includes proven resins such as HexPly M49, M78.1-LT and M79 but with bio-derived epoxy resin content. The excellent resin characteristics remain unchanged in the new Nature Range products, maintaining high mechanical performance and consistent processing properties.
In addition, the HexPly Nature Range provides prepreg options with natural fiber reinforcements that can be seamlessly integrated into existing production processes.

Hexcel worked with TÜV Austria to provide independent, high-quality measurement and assessment of the bio-content of HexPly Nature Range products. TÜV Austria’s OK biobased certification uses a standardized measurement of the biobased carbon content enabling transparency and easy like-for-like comparison between products.

At JEC World in Paris on May 3-5, Hexcel presented an alpine ski produced by the Tecnica Group Ski Excellence Center which produces skis for Blizzard and for Nordica using HexPly Nature Range M78.1-LT UD flax fiber prepreg. In addition to providing a bio-based material solution, the natural fiber-reinforced prepreg also offers the potential to improve impact performance and vibration damping in the ski.

Claude Despierres, VP of Sales and Marketing – Industrial at Hexcel, said, “Our new HexPly Nature Range forms an important part of providing customers with biobased, TÜV-certified material options based on our established prepreg resin systems. Marine, winter sports, wind energy and automotive manufacturers can now have the choice to switch from petroleum-based material solutions to Hexcel HexPly Nature Range with no compromise in performance or process efficiency.”

• Low impact of Ukraine war on business performance in 1st quarter
• 12.2% increase in sales to €270.9 million based on growth in all four business units
• Adjusted EBITDA improves by 11.5% to €36.8 million

SGL Carbon generated consolidated sales of €270.9 million in Q1 2022 (Q1 2021: €241.5 million). This corresponds to an increase of €29.4 million or 12.2% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to €36.8 million in the reporting period.

Sales development
In the first three months of fiscal 2022, the sales increase of €29.4 million was driven by all four operating business units: Graphite Solutions (+€11.3 million), Carbon Fibers (+€6.6 million), Composite Solutions (+€7.2 million) and Process Technology (+€6.0 million).
In particular, sales to customers in the automotive and semiconductor industries and a significant recovery in the industrial applications segment were key factors in the increase in sales. Sales of the Process Technology business unit to customers in the chemical industry also developed pleasingly. The effects of the war in Ukraine, which has been ongoing since the end of February 2022, had only a little impact on SGL Carbon's sales performance in the 1st quarter.

Earnings development
Despite the increasingly difficult market environment in the course of Q1 2022, associated with temporary supply and production bottlenecks at their customers, temporarily interrupted transport routes, and significantly higher energy prices, SGL Carbon was able to keep the adjusted EBITDA margin almost stable year-on-year at 13.6%.  
Adjusted EBITDA increased by 11.5% to €36.8 million in the reporting period. Higher capacity utilization in the business units and product mix effects contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation. By contrast, higher raw material, energy and logistics costs as of end of February 2022 had a negative impact on earnings. The Carbon Fibers business unit was particularly affected by the energy price increases. One-time expenses of €9.2 million in conjunction with energy transactions burdened the Carbon Fibers business unit in the 1st quarter of 2022.  
To secure our production and delivery capabilities, around 85% of the energy requirements of the entire SGL Carbon for 2022 are price-hedged.
Adjusted EBITDA and EBIT do not include in total positive one-time effects and special items of €8.5 million, among other things from the termination of a heritable building right to a site no longer in use. Taking into account the one-time effects and special items presented as well as depreciation and amortization of €14.1 million, reported EBIT increased by 83.5% to €31.2 million (Q1 2021: €17.0 million). The net profit for the period developed correspondingly and more than tripled from €6.1 million to €21.4 million in a quarter-on-quarter comparison.

Outlook
The sales and earnings figures for the 1st quarter 2022 confirm the stable demand from different market segments. Price increases and volatility in the availability of raw materials, transportation services and energy were largely offset by savings from the transformation program and pricing initiatives at the customers.
For 2022, SGL Carbon continues to expect volatile raw material and energy prices, which were included in their forecast for 2022 at the time of planning. However, there are uncertainties about the extent and duration to which SGL Carbon and the customers will be affected by the impact of the war in Ukraine or temporary supply chain disruptions due to the lockdowns in China. Therefore, SGL Carbon's outlook for fiscal 2022 does not include supply and/or production interruptions at customers or the impact of a possible energy embargo that cannot be estimated at this time.  
SGL Carbon's forecast also implies that factor cost increases can be at least partially passed on to the customers through pricing initiatives. SGL Carbon has also included the revenue and earnings impact from the expiry of a supply contract with a major automobile manufacturer at the end of June 2022 in our forecast.